Stifel adjusted its valuation view of Lattice Semiconductor, raising its price target to $110.00 from $80.00 and keeping a Buy rating, citing the company's latest quarterly performance and stronger-than-expected forward guidance. At the time of the update, the stock was trading at $105.49 and carried a market capitalization of $14.46 billion.
The firm's decision followed Lattice's fourth-quarter fiscal 2025 report, which produced revenue above expectations and earnings per share that matched consensus. Lattice posted an EPS of $0.32 for the quarter, in line with analyst estimates, and delivered revenue of $145.8 million versus an expected $143.18 million. Management's guidance for the first quarter of fiscal 2026 also exceeded consensus for both revenue and adjusted earnings per share, prompting the broker upgrade.
Stifel pointed to several operational drivers underpinning the more bullish outlook. Server-focused revenue grew 85% year-over-year, reflecting stronger demand tied to AI server infrastructure. The firm noted that FPGA attach rates have climbed from the 'mid-ones' range to an outlook of over 3 units per server for fiscal 2026. New product lines are scaling quickly as well: the Nexus and Avant platforms expanded approximately 70% year-over-year and now represent a low-20s percentage of the company's total revenue mix.
Despite those gains, some segments showed pressure in fiscal 2025. The Industrial segment declined about 18% over the year. Stifel indicated channel inventory levels have normalized, which supports a forecasted recovery for Industrial, ranging from 5% to 15% growth in fiscal 2026.
Management also increased capital return capacity by authorizing an additional $250 million for share repurchases. Stifel summarized its view by saying Lattice is finishing the year with improved positioning and signs of earnings acceleration as it enters a multi-year growth cycle across Data Center and Physical AI ecosystems.
Other brokerages updated their views following the quarter. KeyBanc raised its price target to $125 while maintaining an Overweight rating, attributing the change to improved results in the Communications and Computing segment. Needham increased its target to $110, citing a revenue beat in the fourth quarter and optimistic guidance for the first quarter of 2026. Rosenblatt Securities moved its target to $105, emphasizing revenue strength driven by demand from data centers and physical AI applications.
Analyst price targets for Lattice now span a range from $75 to $135. The stock's valuation, however, appears elevated on a trailing multiple basis, with a price-to-earnings ratio of 521.94 reported alongside the recent price action.
Summary of key financials and analyst actions
- Q4 fiscal 2025 EPS: $0.32, in-line with expectations.
- Q4 fiscal 2025 Revenue: $145.8 million, above the expected $143.18 million.
- Stifel price target raised to $110 from $80; Buy rating maintained.
- KeyBanc, Needham, and Rosenblatt also raised targets to $125, $110, and $105, respectively.
Investors and market participants will be watching whether the demand drivers cited by analysts - particularly AI-related server deployments and adoption of Nexus and Avant products - sustain revenue and margin momentum through fiscal 2026. Valuation metrics and segment-level variability, such as the Industrial decline, remain factors for monitoring.